Hindustan Construction

A 1:1 bonus issue and a part conversion of some redeemable debentures, saw equity bloat from Rs 7.77 crore to Rs 20.02 crore. As a result of this and the drop in profitability, earnings per share dipped from Rs 20.12 last year to Rs 5.25 and margins at the net level also dropped from 8.53 per cent to 5.88 per cent.

Revenues exclusive of the companys share of turnover in the Naptha Jhakri Joint Venture, also dropped from Rs 183.16 crore to Rs 178.75 crore. Although other income grew 22.73 per cent, HCC had to bear a loss of Rs 2.42 crore, when it sold some Government Of India (Project Export Iraq) Bonds. Increased capital expenditure on some new projects has further added to the woes of the company. All this, coupled with increasing competition in the Indian construction industry has negatively affected margins at the operational level which dropped from 17.5 per cent to 15.7 per cent.